Japanese stocks were powered by blue chips such as Canon Inc. and Sony Corp. on Thursday, as investors shifted their focus from volatile currencies to U.S. data.
Japan's Nikkei 225 Average rose 102.08 points, or 0.62 percent, to finish at 16,473.36 while Hong Kong's Hang Seng Index 1 percent, or 183.37 points, to close at 18,842.99.
Japan Tobacco, the world's third-largest tobacco company, surged 4.75 percent to 529,000 yen ($4,600) on a Financial Times report that it may bid for U.K.-based Gallaher Group PLC, which owns the Benson & Hedges and Silk Cut brands.
Gallaher acknowledged later that it had been approached by a potential suitor, which it declined to name. Japan Tobacco had no immediate comment.
Elpida Memory inched up 0.18 percent to 5,650 yen ($49.13) after reports that it plans to triple its DRAM chip production capacity with a new 800 billion yen ($6.96 billion) factory in Taiwan.
Elpida Memory and Taiwan's Powerchip Semiconductor Corp. said later that they have agreed to form a DRAM joint venture, in a move to become more competitive in the chip-making business.
Other gainers included electronics and machinery stocks, with Canon Inc. rising 3.09 percent to 6,340 yen ($55.13) and Kyocera Crop. posting a 1.94 percent to 10,510 yen ($91.39). Komatsu Ltd. added 1.19 percent to 2,125 yen ($18.48).
Traders said investors will now be closely watching the settlement of December Nikkei 225 futures contracts on Friday, as well as a slew of economic data, including Japan's revised gross domestic product data, to see if the index can continue to climb higher as many investors are expecting.
Elsewhere:
BANGKOK: Thailand's shares closed lower as profit-taking in energy blue chips amid weakening global oil prices outweighed continued gains in banks on buying by foreign players. The Stock Exchange of Thailand's SET index lost, 0.62 point, or 0.08 percent, to close at 745.54.
JAKARTA: Indonesian shares fell as profit-taking in car distributor Astra and telecommunication blue chips kept the index in negative territory. The Jakarta Stock Exchange Composite index closed down 2.312 points, or 0.1 percent, to end at 1,782.12.
MALAYSIA: Malaysia's key stock index ended flat after last-hour bargain-hunting helped absorb losses. The Kuala Lumpur Composite Index of 100 blue chips slipped 0.09 point to 1,098.26.
MANILA: Philippine stocks ended flat as investors hunted for bargain stocks. The benchmark 30-company Philippine Stock Exchange Index dropped 1.61 points, or 0.06 percent, at 2,796.18.
MUMBAI: Indian shares ended slightly ahead with gains in Reliance Industries dampened by profit-taking in leading telecom and technology shares after a sharp rise in the stock indices over the last month. The Bombay Stock Exchange's 30-stock Sensitive Index, or Sensex, rose 23.03 points, or 0.2 percent, to 13,972.03.
SEOUL: South Korean shares fell, dragged down by exporters as the Korean won hit a fresh nine-year high against the U.S. dollar. The Korea Composite Stock Price Index, or Kospi, fell 0.2 percent, or 3.43 points, to 1,410.30.
SHANGHAI: Chinese stocks were little changed, as selling by investors seeking to lock in recent gains limited advances for telecommunications companies from third-generation mobile phone services. The Shanghai Composite Index edged up only 0.01 percent to close at 2,156.75. The Shenzhen Composite Index dropped 0.4 percent to 506.16.
SINGAPORE: Singapore's benchmark Straits Times Index ended slightly higher as investors looked for bargains after Wednesday's dip, and traders expect the index to continue rising till year-end. The STI finished up 6.8 points, or 0.2 percent, at 2901.8 points.
TAIPEI: Taiwan shares fell slightly as losses in electronics heavyweights offset gains in hotel and financial stocks. The Weighted Price Index of the Taiwan Stock Exchange lost 6.81 points, or 0.1 percent, to 7,686.52.
WELLINGTON: New Zealand's shares closed lower with the NZSX-50 benchmark index falling 1.55 points at 3,853.47.
SYDNEY: Australia's share market ended flat with lower metal prices placing pressure on global miners BHP Billiton and Rio Tinto. The benchmark S&P/ASX200 index eased 1.5 points to 5,465.2.
With files from wire services
